SOURCE: Payment Data Systems, Inc.

August 29, 2006 07:00 ET

Payment Data Systems Again Chalks Up Record Month in Transactions and Volume

SAN ANTONIO, TX -- (MARKET WIRE) -- August 29, 2006 -- Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that July was another record month for both its credit card transaction and dollar volume.

The company's one-month transaction increase of 52% in July resulted in a 20% jump from June's dollar level. Payment Data Systems' monthly transaction volume increased 679% year-over-year in July, while dollar volume leaped 201% from year-ago levels.

July's increases mark the latest in a series of record months for the company. It also comes on the heels of the company's announcement earlier this month that Second Quarter revenues vaulted ahead 55% from First Quarter levels.

"Payment Data Systems has again recorded impressive monthly gains in transaction and dollar volume," said Payment Data Systems Chairman and CEO Michael Long. "We continue to exceed our goals as we work to achieve ongoing growth and sustained profitability."

Mr. Long also reiterated that the company expects year-over-year increases of 300% in transaction volume and 150% in dollar volume in the current quarter.

About Payment Data Systems, Inc.

Payment Data Systems, Inc. is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

Payment Data Systems, Inc. is the owner of the electronic bill payment portal, http://www.billx.com, which has the ability to transmit payments to thousands of national billers.

Payment Data's intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit and stored value cards.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.

Websites: www.paymentdata.com, and www.billx.com.

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.

Contact Information

  • Contact:
    Michael Long
    Investor Relations
    210.249.4040